As you’ve probably heard by now, the government has passed sweeping legislation to dramatically change our tax code. A lot of things are going to change.

Before I get started, let me just remind you that if you need individualized tax advice, you should consult your tax advisor. However, I want to provide you with some helpful information about how the changes could affect your mortgage and other payments.

The main driver in the changes is that the standard deduction has been increased to $12,000 for an individual and $24,000 for a couple. This is important because it will encourage more people to claim the standard deduction as opposed to itemizing those deductions. As it relates to real estate and real estate finance, there are three ways the new tax code may affect you. And, one important tax benefit that is staying put.

1. Mortgage interest deduction. Previously, you could deduct the mortgage interest on a loan up to $1 million. That number has been lowered to $750,000. While that’s still a very large number, this change will undoubtedly affect some people at the upper end of the market.

2. Equity indebtedness. If you’ve taken cash out of your property at some point in the past, there were complex rules about what can and can’t be deducted. Starting in 2018, none of the interest on the equity piece of your loan can be deducted. If this is something that might affect you, I recommend discussing it with your tax advisor.

3. The property tax exemption. You’re only going to be allowed to deduct up to $10,000 on your property taxes. Although that might sound like a large number, especially in the DFW area, it’s not the largest property assessed value that affects you. Keep that in mind.

The key benefit that is remaining from the previous tax policy is the capital gains exclusion, allowing you to deduct up to $250,000 in capital gains on the sale of a property if you’re single and $500,000 if you file jointly I know many real estate investors who have greatly benefited from the exclusion.

If you have any concerns about the new tax bill and how it will affect you, it may be worth the time to consult with your tax advisor. If you plan to buy a home in 2018, don’t hesitate to reach out and give me a call. I am happy to help answer any questions you may have.

About Wade Betz

Wade joined Guardian Mortgage in January 2006 as a vice president of sales and branch manager at ourDallas, Texas location.

Wade has a message for Guardian’s customers. There’s more to a mortgage than the close. Wade, like his Guardian counterparts, understands that a job well done is a job that lasts the duration of the home loan. Counsel, support and personal service are paramount to becoming a trusted mortgage advisor for Guardian’s clients.

Your local Dallas mortgage lender. Call us at 469-906-2522 to learn more.

Hear what people are saying about us:

We could not have had a better experience with the Betz Team and Guardian Mortgage. My husband and I were wrestling with a big bank loan, and after a lot of back and forth and unresponsiveness, we decided to switch to the Betz Team. Boy, what a difference! Wade, Felisa, Nat...

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We could not have had a better experience with the Betz Team and Guardian Mortgage. My husband and I were wrestling with a big bank loan, and after a lot of back and forth and unresponsiveness, we decided to switch to the Betz Team. Boy, what a difference! Wade, Felisa, Natalia, and Patrice are amazing and walked us through every step of the process. As first-time home buyers, we received the guidance and knowledge we needed. The customer service of the Betz Team is superior and we completely trusted them to help us through this important financial decision.

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- Katie

It was absolutely a pleasure working with Guardian Mortgage and the Betz Team; this is our fifth mortgage with Guardian, and the experience was just as smooth and expeditious as the very first time. The entire staff at Guardian was always so cheerful, responsive, courteous ...

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It was absolutely a pleasure working with Guardian Mortgage and the Betz Team; this is our fifth mortgage with Guardian, and the experience was just as smooth and expeditious as the very first time. The entire staff at Guardian was always so cheerful, responsive, courteous and knowledgeable; it truly eased the stress that such a potentially stressful process can create!

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- Harris

The Betz Team was phenomenal in helping us buy our house. From the beginning when we needed help with our offer letters to then providing a quick close, The Betz Team made sure that we were taken care of. I will recommend them to anyone that is in need of mortgage services....

The Betz Team was phenomenal in helping us buy our house. From the beginning when we needed help with our offer letters to then providing a quick close, The Betz Team made sure that we were taken care of. I will recommend them to anyone that is in need of mortgage services. 10 STARS!

- Laura

We are thrilled to have obtained our mortgage through Wade Betz and his wonderful team at Guardian! I would thoroughly recommend working with him and Natasha and all the others who helped our loan go through. Their web portal was easy to upload documents to and when I had t...

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We are thrilled to have obtained our mortgage through Wade Betz and his wonderful team at Guardian! I would thoroughly recommend working with him and Natasha and all the others who helped our loan go through. Their web portal was easy to upload documents to and when I had the inevitable question I was able to contact someone and get my answer quickly. I'm also happy to keep our mortgage locally here in Texas.

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- Heather

Great service, friendly staff, smooth transaction, as always! Wade is very pleasant to work with, as well as those on his team! He stayed in touch with me at each step along the way and he keeps in touch with us throughout the year as well with helpful tips, recipes and of ...

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Great service, friendly staff, smooth transaction, as always! Wade is very pleasant to work with, as well as those on his team! He stayed in touch with me at each step along the way and he keeps in touch with us throughout the year as well with helpful tips, recipes and of course the Dallas Cowboys game schedule magnet for the fridge! Thanks for everything! I tell everyone how much I have loved working with Guardian Mortgage Co.